Software Design

E-Commerce Refund and Chargeback Flow

State Diagrams · made in Skemio

State diagram showing dispute opened, evidence review, arbitration, won, and lost settlement states in an e-commerce refund flow.
State diagram showing dispute opened, evidence review, arbitration, won, and lost settlement states in an e-commerce refund flow.
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What it shows

  • Pre-dispute alerts allow instant refunds to avoid card scheme penalties
  • Evidence submission windows are strict hard deadlines (7 to 21 days)
  • Bank arbitration decisions are final and incur heavy non-refundable fees

The takeaway

Explicit chargeback state machines prevent missed bank deadlines and automate evidence collection.

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